American International Group Inc. says it is changing the approach it will be using to shut down 14 elective deferred compensation programs.
AIG, New York, will pay out account balances only to current agents and employees, and not to former agents and employees or to current executives, the company says in a report filed with the U.S. Securities and Exchange Commission.
The change affects the AIG Supplemental Incentive Savings Plan, the AIG Executive Deferred Compensation Plan, the SunAmerica Executive Savings Plan and 11 other legacy elective deferred compensation plans of AIG subsidiaries that AIG assumed in connection with acquisitions, the company says.
AIG announced plans to shut down the deferred comp plans in November.
The current system has been encouraging highly valued agents and executives to quit, so that they can exercise an option to empty out the accounts once they leave, AIG said in November.
“As of November 12, 2008, all participants currently expected to receive distributions from the foregoing plans as a result of AIG’s most recent actions together held an aggregate of approximately $273.5 million in account balances in these plans,” AIG says.
For the executives who stay in the deferred comp plans after April 1, 2009, the plans will continue in accordance with their current terms, AIG says.